X

Market Close: March 18 Down

Fueling Strategy: Please partial fill ONLY tonight due to prices will drop 3 cents Friday then Saturday look for a big drop of 12 cents, yes 12 cents  – Be Safe Today
NYMEX Crude    $ 60.00 DN $4.6000
NYMEX ULSD     $1.7842 DN $0.1219
NYMEX Gas       $1.9441 DN $0.1030
NEWS

Oil prices began crashing on Thursday afternoon, falling nearly 9%. WTI Crude slid 8.68% to $60.00 per barrel, while Brent Crude slipped 8.01% to $62.55 per barrel. It is the biggest drop in absolute terms since April 2020, when oil slipped into negative territory.

Analysts have been volleying predictions during the recent price rally, with bulls signaling there is more room to run, making proclamations of a coming super cycle. Others, more cautious in their outlooks, have warned for a couple of weeks that the optimism present in the oil markets were unjustified. The recent rally was largely on the back of OPEC+ production cuts—or rather, the fact that they agreed to hold production steady in April, instead of ramping up production as the market had anticipated. The passing of the 3rd round of stimulus in the United States had also bolstered oil market sentiment.

But a rising dollar, increased crude inventories in the U.S., growing fears of a resurgence in coronavirus cases and vaccine safety concerns in Europe have proven worthy adversaries. Those concerns are linked directly to oil demand resurgence. And markets are viewing this demand picture as less favorable today, as shown by crude futures which show the market backwardation is waning.

WTI’s front-month contract is once again trading at a discount to the following month. Crude oil WTI April contract is now trading at $59.46 per barrel, while the May contract is trading at $59.57. WTI’s April contract is now down $5.14 on the day.

This is the fifth day in a row for oil price declines and the biggest drop in absolute terms since Apr 2020

Have a Great Day,
Loren R Bailey, President
Fuel Manager Services Inc.
“Serving the trucking industry since 1992”
Office: 479-846-2761
Cell: 479-790-5581
www.FuelManagerServices.com
www.owneroperatoradvisoryservice.com
“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.”
Categories: Fuel News
loren: Fuel Manager Services Inc. "Serving the trucking industry since 1992" I've been in and around the trucking industry for 45-years beginning in owner operator operations at Willis Shaw Express. I bought a small trucking company that I ran for 6-years then sold and went to work for J.B. Hunt Transport in 1982. After 10-years with Hunt, I started Fuel Manager Services, Inc., we are in our 29th year of serving the American trucking companies. Our simple goal was and is to bridge the gap between the trucking companies and the fuel suppliers.